Ask the Expert-Associated Bank

Wed
12
Feb

How can I pull money out if I refinance?

The key to being able to refinance and pull money out is whether or not your property has gone up in value. For example, if you originally obtained a 100% LTV (loan to value) mortgage and prices haven’t moved up, there’s no way to pull equity out of your property -- you don’t have any equity! On the other hand, if since you bought the price of your home has gone up 50%, you should have a lot of equity you can pull out no matter how big your original mortgage.

Tue
07
Jan

Does it make a difference if my mortgage is sold as soon as I purchase a home?

What a “sold” mortgage means is that the owner is still Fannie Mae but the financial institution which closed your loan will not be handling the payments and other services related to your loan. For most customers, they want the current lender to be their servicing agent. Therefore, they can make their payments to that financial institution rather than mailing them to a company outside the state.

Wed
11
Dec

What are the differences between mortgage prequalification, preapproval and final loan approval?

Prequalification is the process where the lender will look at a basic copy of your credit report and use the information you supply to determine how much mortgage you can afford based on your income. No accounts or employment information is verified. Preapproval occurs when all credit and employment is verified and the mortgage is approved, subject to the appraisal of the property you have chosen to buy.

Mon
11
Nov

How can I pull money out if I refinance?

The key to being able to refinance and pull money out is whether or not your property has gone up in value. For example, if you originally obtained a 100% LTV (loan to value) mortgage and prices haven’t moved up, there’s no way to pull equity out of your property -- you don’t have any equity! On the other hand, if since you bought the price of your home has gone up 50%, you should have a lot of equity you can pull out no matter how big your original mortgage.

Fri
18
Oct

How does the government shut down affect my mortgage application?

If you have an application in for USDA Rural Development, they are currently not accepting submissions. But if you have to obtain IRS transcripts for any loan program, they have to be ordered; however, loan applications will not be held up for closing because the transcript has not been received. FHA and Fed VA are currently operational but run the risk of being shut down.

Wed
09
Oct

I see many foreclosures and short sale properties listed on the market, is that a good way to go?

There are some good deals out there in respect to foreclosures and short sales, however keep in mind if the property needs repairs. Some repairs need to be made prior to the purchase, for example missing plumbing or roof issues. The process of purchasing this type of property can be longer and often more complicated, therefore, you want to make sure you have a realtor selected that is knowledgeable in this area.

Tue
13
Aug

If I had sold my home in a “short sale” how long do I have to wait to be eligible to purchase a new home?

Fannie Mae views a short sale the same way as a foreclosure, where you would have to adhere to the “seasoning” rule. If you have 20% to put down on the new home, you cannot apply until a full two years has passed. If you have less than 20% down, you will have to wait for four years.

Wed
10
Jul

I see many foreclosures and short sale properties listed on the market, is that a good way to go?

There are some good deals out there in respect to foreclosures and short sales, however keep in mind if the property needs repairs. Some repairs need to be made prior to the purchase, for example missing plumbing or roof issues. The process of purchasing this type of property can be longer and often more complicated, therefore, you want to make sure you have a realtor selected that is knowledgeable in this area.

Wed
12
Jun

Does it make a difference if my mortgage is sold as soon as I purchase a home?

What a “sold” mortgage means is that the owner is still Fannie Mae but the financial institution which closed your loan will not be handling the payments and other services related to your loan. For most customers, they want the current lender to be their servicing agent. Therefore, they can make their payments to that financial institution rather than mailing them to a company outside the state.

Thu
09
May

What are the differences between mortgage prequalification, preapproval and final loan approval?

Prequalification is the process where the lender will look at a basic copy of your credit report and use the information you supply to determine how much mortgage you can afford based on your income. No accounts or employment information is verified. Preapproval occurs when all credit and employment is verified and the mortgage is approved, subject to the appraisal of the property you have chosen to buy.

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